Birlasoft Limited has reported its financial results for the second quarter of FY25, showing steady revenue growth but a decline in profitability compared to the previous quarter. The company’s revenue from operations for Q2 FY25 stood at ₹1,368.2 crore, a 3.1% increase from ₹1,327.4 crore in Q1 FY25.
However, profit after tax (PAT) declined by 15.1%, coming in at ₹127.5 crore in Q2 FY25, down from ₹150.2 crore in the previous quarter. The decline in PAT was primarily driven by higher expenses during the period.
The company’s EBITDA for the quarter came in at ₹165.3 crore, with an EBITDA margin of 12.1%.
Other Key Highlights:
- Birlasoft’s cash and cash equivalents saw a significant increase of 29% year-on-year, reaching ₹1,858.7 crore as of September 30, 2024.
- The company signed new deals with a total contract value (TCV) of $136 million (approx. ₹1,130 crore) during the quarter, including new deals worth $89 million (approx. ₹739 crore) and renewals of $47 million (approx. ₹391 crore).
- Active client count stood at 261 in Q2 FY25, down from 278 in the same quarter last year.
- Digital & Data services grew by 6.6% quarter-on-quarter, while the ERP segment increased by 4.3%.
- Manufacturing and Energy & Utilities verticals grew by 4.7% QoQ, while BFSI saw a smaller growth of 1.4%.
- Days Sales Outstanding (DSO) stood at 58 days, compared to 52 days in Q2 FY24.
- The company’s workforce strength was at 12,578 employees as of September 30, 2024, with an attrition rate of 11.8%, down from 15% a year ago.
Birlasoft remains focused on sustaining its revenue growth, though managing expenses will be crucial in improving profitability in the coming quarters.
